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Ans-2nd Internal Exam - MGNT Acc
Ans-2nd Internal Exam - MGNT Acc
Part A
Answer All Questions, Each Question Carries 2 Marks
1. What you mean by ratios?
A ratio is a simple arithmetical expression of the relationship of one number to another
A ratio is an expression of the quantitative relationship between two numbers.
DTR = 40000/8000 = 5
3. Working capital = 500000, current ratio = 2:1, calculate current asset & current liabilities?
Current ratio = CA/CL = 2:1 CA = 2 & CL = 1
WC = CA – CL = 2 – 1 = 500000
1 = 500000
CL = 500000
CA = 1000000
4. If a company declares dividend at 30% on its shares, each having a paid up value of 8.00 and
market value of 30. Calculate dividend yield ratio
Dividend yield ratio = Dividend per share/ Market value per share*100
Dividend per share = 8*30/100 = 2.4
Dividend yield ratio = 2.4/30*100 = 8%
Part B
Answer Any Three Questions, Each Question Carries 4 Marks
5. Calculate working capital turnover ratio from the following data
Cash – 15000
Bills receivable – 15000
Sundry debtors – 20000
Stock – 10000
Sundry creditors – 30000
Cost of sales – 180000
31/03/2011 31/03/2012
31/03/2011
Debtors Turnover Ratio = Net Credit Sales / Average Debtors (Including BR)
31/03/2012
Debtors Turnover Ratio = Net Credit Sales / Average Debtors (Including BR)
10. Calculate current asset, current liability, fixed asset, long term debt, from the following
Long term debt to equity = 0.6
Debt to equity = 0.9
Equity share capital = 500000
Preference share capital = 300000
Reserve and surpluses = 200000
Current ratio = 1.5
Debt to Equity = Total Debt / Equity = 0.9 Equity 1000000 Fixed asset 1450000
0.9 = Total debt / 1000000 Long term debt 600000 Current asset 450000
CL = 300000
CA = 300000*1.5 = 450000
140000 140000
Current ratio = CA – CL
CA = 30000 + 20000 + 2000 + 8000 = 60000
CL = 20000 + 15000 + 5000 = 40000
CR = 60000/40000 = 1.5